Visa Inc., headquartered in San Francisco, has initiated a series of layoffs affecting hundreds of workers across its Bay Area operations. The credit and debit giant, known for its dominant role in the financial industry, is seemingly rebalancing its workforce despite pulling in substantial profits over the past fiscal year. In a state-required WARN notice, Visa disclosed the layoff of 192 employees in Foster City and 10 at its San Francisco headquarters. This adds to a previous announcement of 91 layoffs within the same region this November, bringing the total to a significant number of jobs cut.
These layoffs are part of a broader move by Visa to streamline operations, impacting primarily senior management with roles including senior vice presidents, vice presidents, senior directors, directors, and various engineers and analysts. According to the SF Chronicle, affected positions include technical program managers, cybersecurity specialists, and product division workers. While these cuts may appear stark amidst a backdrop of financial success with a reported quarterly revenue of $9 billion, up 12% from the prior year. Visa argues that such moves are key to maintaining and promoting innovation.
Despite the layoffs, Visa spokesperson Fletcher Cook suggested a forward-looking perspective. "We expect to grow the number of employees at Visa this year, next year, and for the foreseeable future," Cook wrote, as reported by SFGATE. Cook emphasized that Visa consistently evolves its operating model to serve clients and foster growth better. As per the announcement, laid-off workers will receive severance packages and access to outplacement services.
In contrast to the reduction in the workforce, Visa's financial health has been notable. The company recorded a $19.7 billion profit on revenues totaling $35.9 billion during the fiscal year that ended in September. Amidst its growing market valuations, Visa also faces serious legal scrutiny. Accusations by the Justice Department point to alleged monopolistic practices in the debit card market, with Attorney General Garland alleging that Visa's size contributes to higher costs for merchants and banks, which trickle down to consumers. As per SFGATE, Visa's response counters the lawsuit as "meritless," with CEO Ryan McInerney stating confidence in Visa's ability to "demonstrate that Visa competes for every transaction in a thriving debit space."
